A second Labour Member of Parliament has been suspended from the party after questions arose regarding the repayment of taxpayer-funded COVID-19 business loans.
Perran Moon, the MP for Camborne and Redruth, has reportedly lost the Labour whip in the House of Commons while an investigation into the matter takes place. He voluntarily referred himself to party officials to allow for scrutiny of emergency finance obtained by his former business.
According to Companies House records, Moon is a co-owner of Autoswot Limited, an online training company established in 2019. Reports indicate the business received £50,000, the maximum amount available, through a government-backed bounce back loan scheme during the pandemic. An attempt to wind up the company was made in November 2022.
"A company which I co-own had successfully applied for a bounce back loan to help with staffing and other essential business costs during the significant turbulence of the Covid pandemic," Moon stated. "The business began to repay this loan, however due to unforeseen external market pressures and despite the best efforts of staff, it ceased trading in late 2022."
He added that the company intended to repay the loan and made repayments until it ceased trading. "The company has regularly sought professional advice with regards to our statutory obligations and as a director I take these obligations seriously," Moon said. "In order for these matters to be looked into, I have voluntarily referred myself to the Labour Party's investigations process and will cooperate fully with this process."
Moon asserted that the loan application was made in good faith and that the information provided, including turnover forecasts, was accurate. He pledged to provide documentation to support this. "I will continue to work hard every day representing my constituents while this party process is ongoing," he added.
Moon is the second Labour MP to face suspension over similar concerns. In August, Bayo Alaba, the MP for Southend East and Rochford, referred himself to party officials for investigation after a newspaper raised queries about a COVID-era loan given to one of his businesses. Reports indicated that Alaba attempted to wind up one business before settling one of two bounce back loans, and is now repaying both.
A Labour Party spokesperson confirmed the situation, stating: "Perran Moon MP has referred himself to the Labour Party so that these matters can be investigated in line with the party's rules. The Labour Party expects the highest standards from our elected representatives and we have robust processes in place to ensure those high standards are upheld. We cannot comment further while the investigation is ongoing."